Category: Financial Mis-Selling

PPI Tax Claims & Christmas Time: Let’s enjoy the holiday season!

PPI tax claims are the last thing you would think about at Christmas. But 2020 has been a hard year, no one can really deny that. With Covid-19 and the second lockdown. That’s why Gowing Law is ready to indulge in the Christmas spirit of giving. The best present we can get you is from HMRC in relation to your PPI tax claim. We know you deserve a pay-out from losing out on the tax for you PPI claim.

Don’t just send in a PPI tax claim on your own. Get the help of Gowing Law Solicitors to make sure that it is completely valid and can get you back £100’s as a pay-out. We are ready to spread the Christmas cheer with our legal expertise. You may not even know that you are eligible to make a claim. Well, it’s time for you to find out more about Gowing Law and PPI tax claims. Click the link below to learn more!

How is Gowing Law going to help with my PPI tax claim this Christmas?

Gowing Law’s main aim with PPI tax claims has always been to get our claimants the pay-outs that they deserve. Already, we have already managed to get around £10,000 in rebates for our UK clients. With our team on track and ready to go, we aim to increase this number over the holiday period. We’ve always wanted to help as many people as possible with their financial mis-handling claims. That’s why we also accept claims from people who have already been turned away by HMRC. You could have been turned away for very simple reasons, including:

• Incorrect paperwork
• Number mistakes about your PSA
• Incorrect facts and figures
• Filling out the wrong forms

Overall, we know that your PPI tax is #betterinyourpocket. That’s why we are ready to help you get your money back and the justice that you deserve for being mis-sold a policy. You should get the full amount of money that is owed to you without being forced to endure the fuss of tax forms. Gowing Law is here to support you throughout your PPI tax claim journey. We will make sure that you get your money back.

The basics of PPI tax claims: What do you need to know?

As you can see, before you make any type of PPI tax claim, there are a few things that you need to know. It’s always good to learn the basics of financial mis-handling claims. That way you can work with your solicitors feeling like you are prepared for any type of questions that may come your way.

Before you jump into your claim, let’s take a few moments to understand what PPI tax claims are all about. In the past, if you took out any type of financial agreement, you would find that your financial advisor would tell you to take out PPI as well. PPI stands for payment protection insurance. It was used as a safety blanket just in case you could not pay back your loan on a financial agreement, such as credit cards and mortgages, however in most cases it was mis-sold. Take a look at the infographic below to see how financial mis-handling occurred during the sale of PPI.

No one likes being pressurized into buying a product, but for most cases of PPI this ended up being the case. For those who were self-employed or moving abroad, it was completely pointless. That was why HMRC allowed for any mis-sold polices to be reimbursed. However, for quite a lot of people they found that around 20% of their pay-out was taken away due to the amount being taxed. That’s why they may have found that this was unfair considering the circumstances of PPI.

Why did you end up losing PPI tax?

Naturally, a PPI tax claim is about recovering the tax you have lost. There are three categories that make up your PPI rebate as a whole. These are:

• The amount you were given back for your PPI policy
• Any additional loans or interest that was added by the bank onto your policy
• The statutory interest that was added at 8% per year

Overall, the only thing that could be taxed on your PPI is the statutory interest. That’s why you may find that the assumption may be made that the refund of your money could have pushed you over your personal savings allowance (PSA). If this was not the case, then you may have found that 20% of your PPI tax was simply taken away for no reason. In other cases, it may have been taken away automatically by a bank without them actually checking your financial details.

By making a PPI tax claim you can claim back the money that was taken away from you. Gowing Law’s solicitors can help support throughout the claiming process.

Christmas is the perfect time to make a PPI tax claim

Whether you want to get a little extra spending money for the holiday season, or perhaps you want to save some money, you have every right to make a PPI tax claim in order to get a pay-out for HMRC. As this is the season of giving, if you want to make the PPI tax claim process easier, Gowing Law will be here in order to help you understand how much you could be owed. It entirely depends on your own PSA and how much you have gone over or under. Take a look at the GIF below to get an idea of how much tax you can claim:

Now, it is important to state that everyone’s pay-out will be completely different. This is because everyone has a different PSA and will be paying different amounts of tax. So, keep this in mind when you eventually start working with Gowing Law Solicitors. It will take around 6-8 weeks in order to process your claim and get the cheque back from HMRC. Be patient and keep in contact with your solicitor. They will always keep in contact with your to ensure that your claim is handled smoothly.

How do I know if I am eligible to make a PPI tax claim?

Now that you completely understand about the basics of PPI tax claims, and are preparing to make your own so you can get your pay-out just before Christmas, you may be wondering if you could be eligible to make a claim. We are always here to help our claimants. Even if you have already been rejected by HMRC, there may have been a simple mistake that just invalidated your claim. That’s why you may want to be more thorough this time to make sure that you definitely get the pay-out that you deserve.

To be eligible for a PPI tax claim, you may:

• Have spent under your PSA, meaning that there was no reason for it to be taxed
• Have made your PPI claim the last 4 years
• The tax was automatically taken away from your PPI claim at 20%

If you fall into any of these categories then you could claim back your tax without there being any problems. We would recommend that you file your financial documents in order to prove that you are a basic/high tax rate payer and that you were mis-sold PPI when you originally took out your claim. That way, when one of our solicitors in Manchester starts to work on your case, all of the information they need will be at their fingertips. If you ever feel confused about why they are asking for certain information, feel free to let them know! They would be more than happy to help and explain the process to you.

How can a Gowing Law Solicitor help me with PPI tax claims?

Not only can our trained solicitors help you with all of the tricky paperwork of your claim, if you are struggling to crunch together the numbers about how much you could be owed, or perhaps how much you have paid as PPI tax, Gowing Law can support you and can help you avoid making any mistakes that could invalidate your claim.

We can also let you know whether you can make a claim or not. If you have made a claim within four years then you will be eligible to make a claim. If it is any longer then there is a chance that you can no longer get the tax back. So make sure to make your claim as quickly as possible. The best bet is to do it before the new tax year.

In order to make things simple, Gowing Law has created our own PPI self-assessment form that only requires a little information to get started with your claim. That way you can let us know the basics and you can leave the tricky stuff to our tax specialists. We will make sure to do everything possible to ensure that you get the pay-out that you completely deserve.

What else is Gowing Law planning on doing for Christmas?

Naturally, with the Christmas season approaching, Gowing Law wants to spread the joy to all of our clients. We understand that it may be a bit of a bleak time for everyone, but we are ready to do our part to ensure that our clients get the best legal help possible.

In order to keep up with our law firm, we would recommend that you read our blogs, socials and sign up to our newsletter. That way you can keep an eye on our latest Christmas blogs, our giveaways and competitions over the festive season. We will make sure to keep you entertained whilst we handle your claim. That way you just need to sit back and wait for us to send you your check. It’s just that simple!

Don’t forget about our loyalty scheme!

Another thing that can brighten you up during the Christmas period is our loyalty scheme. If you have had a personal injury claim with Gowing Law then you could join our scheme. When you are a part of the scheme, all you need to do is recommend a friend to our firm. If we win their case then we will gift you £300.

But that’s not the only thing. Gowing Law is currently developing a loyalty scheme app that can reward our customers further with vouchers, gifts and prizes. The app will host weekly competitions and giveaways that you can get involved in. All you need to do is download it on your phone to get started.

When this app is ready, we will alert our customers to make sure that they can get involved. Don’t forget to check out our socials as well to see future announcements.

Get in contact with Gowing Law to help with your PPI Tax Claims

Whether it’s during the Christmas season or after, Gowing Law will always be here in order to help you with your PPI Tax Claims. To get started with our experienced solicitors, all you need to do is contact us. We can offer free advice and consultations to begin with. Then if you want to work with us, we can offer you our services on a “no win-no fee” basis. That means you will not need to pay any hidden fees and will always come out on top with their claim.

Call us on 0800 041 8350, email info@gowinglaw.co.uk or use our claims checker. We have also created our own self-assessment submission form that can help with starting off your PPI Tax Claim. Once it is filled in, one of our specialists will be in contact to move you forward with your claim.

Read more of Gowing Law blogs

Don’t forget to check back with Gowing Law’s blog to see our latest content. We update our blog every week with new topics. This includes UK legal updates, the basics of legal claims and special notices. If you cannot find a topic that interests you, make sure to write in and let us know about your suggestions. Our email is info@gowinglaw.co.uk.

Make sure to also follow our socials to see our latest giveaways and updates.

Happy Christmas!

A PPI pay-out is designed to make sure that you get the money back that you spent on a financial policy that was not suited to your own personal situation. That’s why it can feel frustrating when you finally get paid, only to realize that part of it has been taken away due to a tax deduction. So, the real question is, why did they take away the PPI tax in the first place? You were owed a certain amount of money, therefore you may be feeling annoyed that you did not get the full amount back. That’s why, after you have learned about the basics of PPI tax, you need to consider whether or not you are going to get it back from HMRC.

Gowing Law Solicitors can help you with your claim. We have already helped thousands of people around the UK get the money back that they deserve from a PPI tax pay-out. You could be owed hundreds of pounds. All you need to do is get in contact and we can start you on your PPI tax claim journey:

The Basics of a PPI pay-out

Before we discuss whether or not you should get your tax returned to you, it’s important that you get a basic understanding of what PPI is in the first place. That way you can figure out whether or not you are eligible for a PPI tax return. PPI stands for “payment protection insurance”. It was used as a safety net to guard you against any financial problems if you bought some sort of lending scheme. This could include:

• Credit Cards
• Mortgages
• Catalogue Payment Plan

These are only a few examples of what a PPI plan could have been attached to. Most people may have thought that PPI was compulsory or were pressurized into buying it just in case they had any future problems paying back their loans. What they did not realize was that a PPI plan was not fully catered to their own financial situation. Take a look at our example below to get an idea of how PPI could have been mis-sold:

Being self-employed, Mark did not need to worry about whether or not he was going to be paid by a “manager” or “employer”. After all, he was already employed by himself. As the policy was a loan and was specifically designed to protect him if he did not get a wage from his employer, it it did not fit his needs. That is why it was mis-sold to him and he was owed a PPI pay-out. However, even if he got a PPI pay-out, there is still a chance he did not receive it. This is because of PPI tax.

Did you know that there is a second-wave for PPI pay-outs?

According to The Sun, a second wave for PPI pay-outs is just around the corner! This is because banks have had to refund commissions over 50%. Therefore:

“UK banks could end up forking out billions more pounds to customers affected by the PPI scandal.”

Already, UK banks have paid £38 billion to over 12 million customers. You could be one of these people who is owed a PPI refund. The ways you could be eligible include:

• If you have been denied payments.
• Only being given partial repayments.
• Never having claimed for mis-sold PPI in the first place.

If you are feeling curious about the second PPI pay-out wave, make sure to talk to Gowing Law’s trained tax specialist solicitors for more details. That way we can make sure you are completely eligible before moving forward with your claim.

Why did I not receive my full PPI pay-out?

Now, this is where we steer back to the original point of this article. You may have noticed that when you received a confirmation of your PPI refund, it did not have the full amount listed on it. Instead, you may have noticed that there was a section talking about tax that was taken away. In most cases 20% of your PPI tax may have been automatically deducted by your bank to make sure:

• You did not go over your personal savings allowance (PSA).
• You were not given any interest on your PPI pay-out.

This tax would have been given to HMRC. In order to get it back you can send in a R40 form. However, these can be complicated and sometimes you may accidently invalidate your claim by sending in the wrong information. Having a trained tax solicitor on your side can make sure that, even if you have already been denied a claim, you can potentially still get your money back. Gowing Law Solicitors can help you by filling out the tricky forms and getting you the pay-out that you deserve.

Should I have paid this tax in the first place?

In most cases, no, you should not have had to pay this tax. It may have been automatically deducted from your pay-out even if you were nowhere near going over your PSA. This is why you have the right to claim it back from HMRC. Now, when you get a PPI pay-out, it is usually made up of three financial elements. The elements are:

• The monetary refund of your PPI.
• Additional loans that may have been placed on your PPI payments by the bank to help you pay it back. These payments may have added interest.
• A statutory interest that was increased every year at 8%. This interest should have been added to both of the previous elements.

All three of these PPI pay-out elements are made to help you return to your original financial position before you bought PPI. However, when you had the PPI pay-out, the automatic deduction may have been made on the assumption that you had already gone over the original amount that you have been estimated. This would have been seen as adding too much interest, especially if it went over your PSA. That is why it may have been automatically taxed. To find out whether or not you have been unfairly taxed, make sure to take a look at the PPI pay-out letter you received. If any tax has been taken away then it should be listed. You can then use this as evidence to try and get the money that was deducted back.

Could I get a lot of money from a PPI tax pay-out?

PPI tax is a form is financial mis-selling. Just like any other financial mis-selling case, the amount you receive will depend on the amount you put into the claim in the first place. The more you have paid in through your rates, the more likely that you could get out of a PPI tax pay-out. Take a look to see what bracket of rate payment you could fall in to:

What sort of evidence do I need for my PPI tax pay-out?

If you think that you are eligible for a PPI tax reclaim, it’s time for you to collect your evidence in order to prove that you are owed money from your previous PPI pay-out. You deserve to get it back from HMRC! When you speak to a solicitor about a tax reclaim, make sure to bring them all financial evidence to help them estimate a pay-out. This can include the amount you paid in to your PPI scheme, your original pay-out document and whether or not you missed any potential payments. You can also bring forward any communication between you and your financial advisor/lender or your bank. You can also make them aware of your grievances by writing them a letter to tell them of your intentions. This will let them know of what you intend to do.

Can I claim PPI tax if I am self-employed?

Of course you can! If you have been mis-sold a PPI policy, and received a pay-out, you have every right to get your money back whether you are in full-time employment or run your own business, if you have had money taken away from you, you should get it back. In fact, the fact that you are self-employed, this can prove that you were mis-sold a policy in the first place. That’s why you deserve to get every penny of your money back, including any tax that was taken away!

Can I claim PPI tax if I am now living abroad?

Although you and your solicitor will have to work on a different form (aka. an R43 form), you also have the right as a UK citizen to get your money back. You may have taken out your scheme to make a business for yourself abroad. That’s why if the PPI policy was not for you, and you got your money back, you deserve to also get your tax back. Gowing Law Solicitors can help you with these types of claims.

PPI tax Claims vs PPI Plevin claims

One important thing that we do need to discuss before we help you with your PPI tax is known as a “PPI Plevin case”, also known as being “Plevined”. If you are going to make a claim, you need to now which one of these you are going to pick. You cannot claim tax if you make a PPI Plevin case. So, make sure to discuss with a solicitor the type of case you are going to claim for.

Being “Plevined” means that you fall under the Plevin rule. If more than 50% of your PPI’s cost was actually commissioned from your lender, or perhaps you did not know that you paid a high commission fee with the lending scheme, you could be owed thousands in compensation! You may not have even noticed that this type of commission was added to your bill. You simply paid it back without even realizing it!

The good news is, if you fall under the Plevin rule, you have the potential to make a lot of money through compensation. This is because most of the commission that was taken in by the banks was at least 67%. That means you could be owed this money, plus the amount of interest that was added to the total fee and your commission.

Gowing Law can help you with this type of case. You just need to decide whether you think you would be more eligible for a Plevin case or PPI tax. Remember, you cannot pick both!

How long do I have to make a PPI tax reclaim?

If you want to make a PPI tax reclaim, you will have around 4 years from your tax year. This can also be from the time you received your PPI pay-out. Gowing Law can then contact HMRC on your behalf and fill out any tricky paperwork.

Gowing Law is ready to help you get your PPI tax back!

If you are ready to get started on your PPI tax claim, Gowing Law’s helpful team of expert solicitors can guide you through the claims process.  Use our simple assessment form to get started. Our team of lawyers can then work with you to ensure that a successful PPI re-claim is sent to HMRC. Then you can get your money back. We can offer you free advice and consultations. If you want to work with us, we offer our services on a “no win-no fee” basis. That means you will always come out on top with any sort of claim.

Contact Gowing Law today by calling 0800 041 8350, emailing info@gowinglaw.co.uk or by using our direct messenger on our contact page. Our team would be more than happy to answer any additional questions you may have.

Read more about PPI tax claims

Don’t forget to check out our other law articles! Read more about PPI tax claims and financial mis-selling from our law blog. We update our blog with new content every week to ensure that you can keep updated about UK law. If you can’t see the topic you are looking for, don’t worry! Just write in to let us know. We would be happy to make an article based on your suggestions. Email info@gowinglaw.co.uk now.

We look forward to helping you with your case soon!